Investments: Fossil Fuels

Why Divest from Fossil Fuel Investments?

Divestment means not benefiting from the damage being caused by the fossil fuel industry. Every dollar made from an investment in the fossil fuel industry means profiting an industry that is polluting our environment. The health and well-being of our kids and our communities is very much at risk. To make matters worse, fossil fuels are at the center of on-going conflicts, wars, and oppression.

Divestment sends a clear, unequivocal message. This is about numbers – not in dollars – but in people. If millions of people remove their financial interest in fossil fuel companies, that will send a very clear and very powerful message to governments, legislators, banks, and the global business community. It will also revolutionize other pivotal parts of the economy where consumption of fossil fuels can be reduced through innovation – creating new products and improving the energy efficiency of the things people use every day.

Investing in fossil fuel companies is risky: And, investments in fossil fuels companies will become riskier and riskier. The value of their stocks is built around the value of the oil, gas and coal reserves that they own. Those reserves must stay in the ground if we are to get climate change under control. So, if they can’t sell what they own, what they own is worth nothing. That’s means their stock prices will drop and then they will go bankrupt. (And, that is exactly what was already happening for the last decade in the coal industry before Russia decided to invade Ukraine.)

Divestment provides reinvestment opportunities. The new energy economy is growing, and that growth is accelerating quickly. New companies are being created every day, and established companies are quickly moving to create new products – including home energy networks, advanced energy storage systems, and smart efficient vehicles. Whether your investment style is aggressive and “growth” oriented, or conservative and “income” oriented, the emerging new energy economy provides compelling reinvestment opportunities.

Investment advisors often make the point that your investment decisions should allow you to sleep at night. Sleep better by knowing that you’ve done something to change the future for your kids and everybody who will come after you. And, knowing you’re not invested in a dinosaur industry.

The smart thing to do couldn’t be more obvious.